TEAM ELDI 360

778-840-3737 | dimitri@teameldi360.com

Dimitri Schwartzman             Real Estate Team

honesty integrity professionalism

Dimitri Schwartzman

PST and GST on commissions and more..

PST and GST

On April 1, 2013, the Harmonized Sales Tax (HST) was replaced by the Federal Goods and Services Tax (GST) and the BC Provincial Sales Tax (PST).

When does HST apply and when does GST apply?

The 12% HST applies if the seller transfers either possession or ownership of a new home to the buyer before April 1, 2013.

The 5% GST applies if the seller transfers both possession and ownership of a new home on, or after, April 1, 2013.

The PST and real estate commissions

The return to the PST on April 1, 2013 will affect the taxes you charge on your services.

  • If a commission or fee is payable before April 1, 2013, the 12% HST applies.

  • If a commission or fee is payable on or after April 1, 2013, then the 5% GST applies.

When does the commission become payable?

The commission is paid on whichever of the following two transactions comes first:

  • the completion date under the Contract of Purchase and Sale; or

  • the actual date that the sale completes.

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TEAM ELDI 360

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Dimitri: 778-840-3737

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